OpenAI, one of the companies most responsible for pushing generative AI into the mainstream with its popular ChatGPT LLM, could file for an initial public offering (IPO) by the end of this week.
The Wall Street Journal reported Wednesday, citing unnamed sources familiar with the matter, that OpenAI is working with Goldman Sachs and Morgan Stanley on paperwork for an IPO. The company reportedly plans to file confidentially with the U.S. Securities and Exchange Commission in the coming days or weeks, possibly as early as Friday.
The plan is reportedly to give the public a chance to buy a piece of the company as early as September.
The New York Times, also citing unnamed sources, reported that the company is closely watching the stock market and that the timing of the filing remains in flux.
OpenAI did not immediately respond to a request for comment from Gizmodo.
A spokesperson for the AI company, however, did tell The New York Times, “As part of normal governance, we regularly evaluate a range of strategic options. Our focus remains on execution.”
The reports arrive as OpenAI has just overcome a major hurdle in its quest to go public. On Monday, a federal court rejected Elon Musk’s lawsuit claiming OpenAI illegally converted to a for-profit business. Musk, who co-founded OpenAI before later becoming one of its biggest critics, argued that the company had strayed from its original mission. Musk has said he plans to appeal the verdict.
The reports also come as the next phase of the AI arms race heads to Wall Street. OpenAI rivals Anthropic and SpaceX are also reportedly eyeing going public this year.
SpaceX, Musk’s rocket and satellite company, merged with Musk’s AI company xAI earlier this year. Now, SpaceX is expected to unveil its IPO paperwork this week and could launch its public offering in June, according to The Wall Street Journal.
Meanwhile, previous reports have suggested that Anthropic could also file for an IPO this year. The company has seen major growth, becoming OpenAI’s biggest rival, and is reportedly currently raising more than $30 billion at a $900 billion valuation. But Anthropic is still facing its own hurdles. Earlier this year, the Trump administration labeled the company a supply chain risk.
This all matters because the first major AI company, outside of already established tech giants like Google and Meta, to go public could get first dibs on a broad pool of Wall Street investors eager to get in on the AI boom.
Read the full article here
